Ordinary unsecured creditors have no preferential treatment and are the last to be paid before funds are returned to contributories.

Question

Quizplus · Accepted Answer

This statement is true. Ordinary unsecured creditors are not given preferential treatment and are typically the last to be paid back in the event of a company's liquidation or bankruptcy. Contributories, or shareholders who have contributed to the company, may receive some funds before unsecured creditors, but only after secured creditors and preferential creditors have been paid.

Ordinary Unsecured Creditors Have No Preferential Treatment and Are the Last